United Bank for Africa Plc (UBA), led by Nigerian businessman Tony Elumelu, has achieved a historic milestone in its financial performance for the fiscal year 2023, with earnings above forecasts.
The pan-African financial services group’s 2023 annual report shows a 257 percent growth in earnings to N607.7 billion ($468.8 million), up from N170.3 billion ($131.4 million) in the previous fiscal year. This exceptional performance demonstrates UBA’s perseverance and strong financial management in the face of difficult economic conditions.
The significant increase in profit was driven by higher interest income and a noticeable increase in foreign currency revenues throughout the year.
Interest income increased from N557.15 billion ($432.9 million) to N1.075 trillion ($832.35 million), while fees and commissions increased significantly from N210.52 billion ($163 million) in 2022 to N307.31 billion ($238 million) at the end of 2023. Furthermore, the net trade and foreign exchange gain were N659.26 billion ($510.06 million), a significant rise from N72.15 billion ($55.8 million) in the previous year.
UBA, a major player in Nigeria’s financial scene, with a broad presence in 24 countries across four continents, including vital markets such as the United Kingdom, the United States, France, and the United Arab Emirates.
Tony Elumelu, who owns a 7.39 percent position in UBA, equivalent to 2,527,372,285 ordinary shares, is not just a top investor on the Nigerian Exchange, but also one of Nigeria’s wealthiest individuals.
The group’s outstanding financial success boosted its total comprehensive income from N150.5 billion ($116.4 million) in 2022 to a staggering N1.078 trillion ($832.4 million) in 2023.
Furthermore, its total assets increased significantly from N10.86 trillion ($8.39 billion) on December 31, 2022 to N20.65 trillion ($15.93 billion) by December 31, 2023. Retained earnings also increased dramatically, rising from N429.53 billion ($331.4 million) to N919.87 billion ($709.75 million) within the same time.
The strong financial performance inspired UBA’s board of directors to suggest a final dividend of N2.3 ($0.00177) per share, a significant increase from the previous year’s dividend of N0.9 ($0.00069).
When combined with the N0.5 ($0.000385) per share interim dividend given in September 2023, the total dividend for the year is N2.8 ($0.00216) per share, for a payout ratio of 16.32% and a yield of 10.92 percent.
UBA’s outstanding performance in 2023 reinforces its position as a major financial institution fostering economic growth and prosperity throughout Africa, as it continues to harness its wide network and strategic initiatives under Tony Elumelu’s innovative leadership.
